Exploring the potential of blockchain adoption for promoting value innovation: a case of the halal industry

Abstract

PurposeBlockchain technology has encouraged more transparent transactions process through decentralized protocols and has identified multi-dimensional benefits. However, value innovation–based blockchain for the particular industry requires further elaboration since there appears to be a vague understanding. Therefore, this study aims to provide a profound perspective of value innovation based blockchain, which has the potential to be applied in the halal industry.Design/methodology/approachThis study developed a typology model that describes a profound understanding of blockchain adoption for value innovation. Empirical research was conducted using multiple case studies to justify the model. The case selection in this study was based on the halal industry in Indonesia. This study employed few sources to derive sufficient data through in-depth interviews, direct observations, and archival records. In particular, this study drew upon specific theories to elaborate on the blockchain-enable value innovation.FindingsA blockchain is identified as having the opportunity to promote value innovation in the halal industry through its features. This study defines a typology model of value innovation-based blockchain for the halal industry that takes place on a particular spectrum. The model built in this study classifies blockchain adoption for the halal industry from specific dimensions: the degree of blockchain-based system complexity and the intensity of value innovation. Then, this study finds that these cases have different classifications and are evenly distributed in the quadrants of the model.Originality/valueThe typology model in this study can be a reference for decision-making when considering blockchain to leverage a value innovation in particular systems. Although blockchain technology can potentially be applied in vast areas, the decision-makers should understand that technology adoption should provide distinct values to its stakeholders, notably in multi-dimensional areas such as the halal industry. Thus, this study contributes significantly to blockchain technology usage for the halal industry.